UNITED STATES SECURITIES AND EXCHANGE COMMISSION v. HDG INVESTMENT
CORPORATION and PAUL J. EDWARDS, U.S. District Court, District of Colorado,
No. 99-K-911

The Commission announced entry of default judgments by the United States
District Court for the District of Colorado enjoining HDG Investment Corporation
("HDG") and Paul J. Edwards ("Edwards"), both of Prague,
Czech Republic, from future violations of the antifraud provisions of the
federal securities laws. The Commission's complaint alleged that from at least
June 1998 to May 1999, HDG and Edwards raised $305,000 from investors in a
fraudulent scheme to offer and sell unregistered "prime bank"
securities throughout the United States.

In the court order, HDG and Edwards are enjoined from future violations of
Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Exchange
Act of 1934, and Rule 10b-5 thereunder. They are ordered to pay disgorgement of
$305,000, plus prejudgment interest thereon in the amount of $24,332.64, and
post judgment interest. Each was also ordered to pay civil money penalties in
the amount of $110,000.